PolifrogBlog

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Wednesday, December 8, 2010

Bev Perdue and a NC Budget Proposal...

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The NC budget deficit is growing. Is it $3.2 billion? $3.5?

A new report from the National Conference of State Legislatures on budget conditions in the 50 states and Puerto Rico puts the hole North Carolina is facing at more than $3.8 billion, or 20.3 percent of current budget. NCSL collected information for its report from legislative fiscal offices.

I guess a budget deficit of between 3 and 4 billion is close enough for government work; is it for you?

According to Bev Perdue the only course available to reduce the NC state budget deficit is "to focus on supporting mission critical services and eliminating programs that have outlived their usefulness."

BusinessWeek
[Bev Perdue's] administration directed agencies this week to offer ways to cut spending by up to 15 percent in the fiscal year starting next July 1.

...

In a memo dated Thursday to departments and agencies, State Budget Director Charlie Perusse asked for options on how they would cut 5 percent, 10 percent and 15 percent from their offices.

"Across-the-board reductions have already been taken," Perusse wrote. "This budget cycle we need to focus on supporting mission critical services and eliminating programs that have outlived their usefulness."

Targeted cuts as a method of lowering spending is a poor method for lowering budgets and is destined for failure. Targeted cuts impact recipients of state funds unequally. The result is the creation of haves and have-nots; those who bear the brunt of the cuts and those who do not. Further, those who bear the burden of the state budget cuts would rightfully respond to the unfairness of being singled out poorly and attempt to eliminate the budget cuts. In all likelihood the budget cuts would be severely reduced or eliminated altogether in an effort to draft a fairer budget to those who carry the burden of the cuts. The end result of Perdue's targeted budget cuts would be continued deficits resulting in a continuation of NC's dependence on conditional federal handouts.

NC's budget problems have become dire, so perhaps we should put the cart before the horse... and look back to our previous budget before going forward.

We can assume that a state budget once passed is essentially fair. If it were overly unfair in its distribution of state funds the budget would have failed until a fair budget were reached. This is the point at which the fair and equitable distribution of state funds can be found. It is also the point at which cuts should begin.

In keeping with the sense of fairness Americans are accustomed, the cuts should be made across the board so that all departments and all individuals carry the burden of the budget cuts. There would be no haves, just have-nots, each carrying a load lessoned by pervasiveness.

When departments complain of lowered funding, they can be reminded of their moral obligation to carry their share; they can be reminded that they are not alone in their burden.

It's not hard to be fair until you become a politician.






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